Service Mix (7Ps)
This article covers meaning, importance & example of Service Mix (7Ps) from marketing perspective.
What is Service Mix (7Ps)?
Service marketing mix or 7Ps strategy evaluates a company based on parameters like people, process, physical evidence along with product, price, place, promotion. Service Marketing Mix (7Ps) is a theory similar to conventional 4Ps marketing mix but it has 3 extra aspects or Ps which cover service specific parameters. Service marketing mix or 7Ps help understand company strategies which are in the service industry.
Service marketing mix or 7Ps marketing strategy has additional parameters apart from Marketing Mix (4Ps).
Importance of Service Marketing Mix (7Ps)
7Ps model is used by the company to set their objectives, to perform competitive analysis and SWOT analysis. This framework is used to make a marketing strategy, from strategy formulation to actual implementation. In the service industry, apart from product, price, place & promotion strategy, people, processes and physical evidence are equally important.
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Elements of Service Marketing Mix (7Ps)
A company should continually keep track of the 7P’s of marketing mix to cater the changing market and demand of customers. These 7P’s include:
1. Product
2. Price
3. Promotion
4. Place
5. People
6. Process
7. Physical evidence
Service Marketing Mix (7Ps) should be periodically evaluated and re-evaluated for achieving maximum profit in the market place. Apart from the 4Ps, the 7Ps of service marketing mix include people, process and physical evidence. When we talk about Service Mix, there are some points that make it different from selling products.
The additional Ps are described as:
People:
People are a part of the service marketing mix 7Ps strategy. Staffs, employees and sales persons are required to provide good customer service for your customers. It will deliver a positive experience to the customer who in turn spreads the word about your excellent service. A company should always try to hire right people having right skills and should provide training to its employees.
Process:
This service marketing mix 7Ps strategy involves the process of delivering the product or services to the customers. A good process is required to ensure delivery of same standard of products and services every time. It also saves time and expenses by increasing the efficiency.
Physical Evidence:
Everything seen by the customers while going for your products and services. It includes the physical environment where transaction takes place, packaging and branding. It also includes how the staffs dress and act.
Advantages of Service Marketing Mix (7Ps)
1. Marketing concepts are brought together in a simpler way into one making marketing easier
2. It helps through out the process from strategy formulation to implementation
3. A company can vary its marketing activities according to customer needs, market condition and availability of resources by using this framework
Disadvantages of Service Marketing Mix (7Ps)
1. More complicated due to incorporation of extra 3P’s
2. 7P’s framework doesn’t have any variable addressing issues related to productivity
3. Product is mentioned in singular but not all the companies sell products in isolation
Example of Service Marketing Mix (7Ps)
Let’s take any company which sells software and look into their marketing mix.
• Product: Software
• Price: Monthly subscription or yearly subscription or life time subscription fees
• Place: Online
• Promotion: Social media advertisement, webinars
• People: Directors, staffs, employees
• Processes: Involving more staffs for better conversion
• Physical evidence: Consistent branding of the product
Hence, this concludes the definition of Service Mix (7Ps) along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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